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If my employers disability plan is worded
“All source maximum provision
Under this provision, the persons’s income benefit is reduced if the total of the following income and the income benefit exceeds the all source maximum shown in the table of benefits. The reduction is by which this total exceeds the all maximum.
1. benefits to which another member of his family is entitled on the basis of his disability under
A the Canadian pension plan;
B the Quebec pension plan; or
C a similar plan in another country which has a reciprocal agreement with Canada or Quebec
Benefits payable directly to the family member are not included “
Can they legally claw back my CPP-D child amounts? I know they can claw back my CPP-D. But can they claw back the child amounts?
Generally, it depends on who CPP pays the child benefit to, since your clause excludes "benefits payable directly to the family member." For children under 18, CPP pays the parent, and courts seem to have allowed insurers to offset that amount where the policy wording covers it. For children 18 to 25 in school, it's usually paid directly to the child, so it would seem to fall within the exclusion. An all source maximum also only reduces your LTD by the amount your total income goes over the maximum, so it may not be a full clawback as well. You should ask your insurer to provide you with a copy of your benefit calculation in accordance with your policy to confirm.